Tony Pulis has left Crystal Palace by mutual consent in a shock move prompted by disagreements over the Premier League club's transfer policy, according to reports on Friday morning (AEST).

Eagles boss Pulis had grown frustrated by Palace's failure to push through deals for various players he targeted to strengthen the squad, and he has parted ways with the south London club following showdown talks with co-chairman Steve Parish.

The 56-year-old's reported exit comes less than 48 hours before Palace kicks off its Premier League campaign with a daunting fixture against Arsenal at the Emirates Stadium.

Bookmakers had earlier drastically cut the odds on Pulis being the next Premier League manager to leave his post, with some closing the market due to heavy betting on the former Stoke boss, who had gone from being a 40-1 shot on Wednesday to the odds-on favourite.

"The club would like to thank Tony for his efforts with the club during last season and wish him all the best for the future," the statement said.

Pulis led Palace to an impressive 11th place finish in the Premier League last season after inheriting a squad languishing in the relegation zone in November.

The Welshman completely transformed Palace's fortunes and was named the League Managers Association's Premier League manager of the year in May.

Before reports of the meeting involving Pulis and Parish emerged, Palace clinched its fourth signing since the end of last season with the capture of Liverpool defender Martin Kelly.

Pulis had previously signed Chris Kettings, Fraizer Campbell and Brede Hangeland, but is said to be disappointed Parish could not push through deals for Steven Caulker, Michu and Gylfi Sigurdsson.

Instead, Caulker signed for QPR, Michu joined Napoli and Sigurdsson returned to Swansea from Tottenham.

Pulis is believed to have wanted total control of Palace's recruitment policy, but Parish was reluctant to let the manager be in sole charge of player movement as he wanted to avoid putting the club's future at risk by over-spending.

Former Celtic boss Neil Lennon, ex-Cardiff chief Malky Mackay and Manchester United misfit David Moyes are reported to be among the contenders to replace Pulis.